Congress: pass an extension for the expiring “Mortgage Forgiveness Debt Relief Act of 2007” before January 1st, 2013!
An expiring mortgage tax relief bill, the “Mortgage Forgiveness Debt Relief Act of 2007,” threatens to turn mortgage write down relief like loan modifications and short sales mandated under the National Mortgage Settlement into a tax-day liability nightmare for struggling homeowners.
If an extension is not passed by the end of the year 16 million underwater homeowner families will be forced to pay income taxes on any forgiven mortgage debt. For middle class families this amount is close to a full year’s wages in money they never had. This will have a devastating impact on families, the vulnerable housing market and our economy.
Don’t punish homeowners for much needed mortgage debt forgiveness relief! We urge congress to take action now to extend crucial mortgage debt forgiveness tax relief until housing, and American families, can truly recover.